Planning for the future: Why every farmer needs a financial plan

For farmers, financial planning is about making sure the farm stays viable and that the family is financially secure, no matter what happens

Thu, 15 May, 2025 - 08:00

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By Mark O'Leary, Certified Financial Planner with FDC Financial Services Ltd, based in Midleton, Co Cork

Mark O'Leary, a Certified Financial Planner based in Midleton, Co Cork, with FDC Financial Services Ltd.

Farming is built on hard work, legacy, and long-term thinking. Farmers in this country continue to face unique challenges, such as — weather unpredictability (of course), fluctuating market prices, EU policy changes and rising costs.

As a result, these challenges create financial uncertainty and have made financial planning more important than ever — especially for family farms.

Effective financial planning can help you manage these risks and create lasting security.

What is financial planning?

Financial Planning is a process of setting financial goals and creating a strategy to achieve them. It involves assessing your current financial situation, identifying your short-term & long-term goals, then developing a personalised plan to help you achieve those goals.

The process also includes monitoring your progress and adjusting as needed (known as a financial review). Whether you would like to save money, to buy or build a home, start a family, fund education, or retire comfortably; financial planning can help you fulfil these goals.

Overall, financial planning is a comprehensive and integrated approach to managing your money, and it can help you feel more in control of your finances and better prepared for the future.

For farmers, it is about making sure the farm stays viable and that the family is financially secure, no matter what happens.

Examples of Financial Planning Provisions:

A well-structured financial plan can help you with:

Cashflow — track Income & Expenditure and manage seasonal swings.
A Buffer / Emergency Fund — established to set aside accessible cash to cover unexpected expenses or to sustain your normal living costs in seasonal periods.
Regular Savings Plan — building wealth consistently over time by saving regularly and consistently within your means.
Deal with Debt — make informed borrowing decisions.
Protect your Income — illness or accident cover can keep the farm going.
Life Cover — a benefit that pays out a lump sum in the event of death during the term of the policy.
Business Protection — Helps the farm enterprise remain viable if an owner or partner dies or becomes incapacitated.
Make use of Tax Reliefs — avoid leaving money on the table.
Pensions — essentially it is a tax-efficient, long-term savings plan designed to provide you with a replacement income in retirement when you are no longer earning a regular wage.
Plan for Retirement — don’t rely on the farm as your only retirement plan.

A plan doesn’t need to be complicated. It needs to be realistic, reviewed annually, and personalised to your specific needs.

Farm Succession — The Challenges:

The lack of succession planning is one of the biggest risks facing family farms today. Too many farmers know who they think will continue the farm’s legacy; however, they have yet to formalise their wishes, spoken to their family, or even sought advice.

This issue can create unnecessary problems:

Family disputes — especially between farming and non-farming siblings.
Unplanned tax bills — particularly Capital Acquisitions Tax (CAT).
Delays in farm transfer – affecting entitlements, schemes, and business continuity.
Emotional strain — for both the older and younger generation.

If you haven’t made a will, or discussed your succession plans with your family, solicitor, or accountant, now is the time. Succession doesn’t mean stepping aside overnight. It can be phased, structured, and fair — but only if it’s planned.

Conclusion:

There is a misconception that financial planning is just for the wealthy; however, I believe that everyone can benefit from engaging with a financial planner. Begin with simple steps as you don’t need to do everything simultaneously.

Review your finances annually — especially around key deadlines.
Look at your pension options — don’t rely solely on the farm sale or rental.
Make or update your Will — include clear instructions on farm assets.
Seek advice — from someone with Agri experience (Agri Consultant, Accountant, or a Financial Planner).

Farming is about preparing for what’s ahead — the weather, the calving season, nitrates derogation. Financial planning is no different. Putting a plan in place now can prevent a lot of stress later. Whether you're 25 or 65, a financial plan brings peace of mind — for you and for the next generation.

At FDC Group, we pride ourselves on providing a localised offering, with over 49 offices nationwide. As a home-grown Irish business servicing our clients for over 50 years, we are connected to the concerns, demands and future plans of our clients. Consequently, we are proud to have become trusted advisors to the second and third generation of many farming clients.

A client-focused approach ensures you are at the centre of every part of the financial planning process.

FDC Financial Services is regulated by the Central Bank of Ireland.